The president raised the problem of pension adjustments. "We had intended to adjust pension pays two times, in August and October. However, the government and the Pension Fund's performance allow to adjust them ahead of schedule so that retirees' incomes were larger than we had planned," said the president.
"What do you think? What are your estimations?" the president asked Mr. Zurabov.
"Budget implementation over the first six months of 2004 allow to raise the insurance element of pension pays, as well as the base amount of pension pays to 660 roubles (a little over $22), i.e. what we planned to do on October 1," said Mr. Zurabov.
"This is a financially grounded decision," added the minister.
Starting from August 1, the insurance element of pensions will increase by 6.3%, and retirees' incomes will rise by an average of 130 roubles, while war veterans' incomes will go up by 280-285 roubles, according to Mr. Zurabov.
"This will require 4.2 billion roubles of extra funds a month, which we can afford," said Mr. Zurabov.
Mr. Putin tasked the minister with drafting a relevant government resolution.
The Kremlin press office reported that President Putin had ordered to allocate a total of more than 20 million roubles from his reserve fund to acquire equipment for children's institutions.
In the third quarter-year, for example, the president ordered to allocate 3 million roubles from his fund to the government of the Republic of Altai for purchasing medical equipment for a maternity home in the city of Gorno-Altaisk.
The government of Chuvashia (an autonomy in the Volga Area, capital Cheboksary) received 3.4 million roubles of presidential fund money to buy equipment for the new-borns treatment and care centre.
The administration of the Krasnodar Territory (southern Russia) will get 5.01 million roubles on medical equipment for a number of hospitals and clinics.
Some other regions were also allocated certain amounts of presidential fund money.
